By Barbara Kollmeyer
U.S. stock market futures rose on Thursday, inspired as European markets and commodities rebounded from the prior-day’s rout, with investors focused on a clutch of economic data to come.
Futures on the Dow Jones Industrial Average rose 60 points, or 0.5%, to 12441, while futures on the S&P 500 index rose 6.30 points, or 0.5%, to 1314.90. Futures on the Nasdaq-100 added 10.50 points to 2541.25.
Markets were taking on a sort of calm-after-the-storm approach, said analysts, as yields for 10-year Spanish and Italian government bonds eased and the Stoxx Europe 600 index rose 0.5%. Investors are keeping a close eye on news from Spain, while a referendum in Ireland on the fiscal treaty is expected to keep traders on edge.
“It would be a big surprise if the fiscal treaty is not approved, as all polls have shown a comfortable “yes”-lead, but many undecided voters still could still tip the balance,” said analysts at Danske Bank in a research note. While a “no” vote won’t block the fiscal treaty, they said it would present problems for Ireland and question its future in the euro zone.
The president of the Federal Reserve Bank of St. Louis, James Bullard, told reporters in Tokyo on Thursday that European policy makers must act to prevent the euro-zone crisis from turning into a “major meltdown for the world economy.” Speaking after a Bank of Japan conference, he said the situation was “grave” and noted concern as well about the slowdown in Asia and slightly weaker data out of China.
Wall Street stocks retreated 1% on Wednesday amid signs of a deepening crisis in Spain, reeling from a series of disturbing headlines showing private depositors pulling money out of Spanish banks in April, and problems surrounding the bailout of nationalized lender Bankia SA (BKIA.MC). A Greek poll showing the anti-bailout party leading in the polls ahead of June 17 elections also stomped on sentiment. The S&P 500 index fell 19.10 points on Wednesday, or 1.4%, to end at 1313.92.
The Dow Jones Industrial Average dropped 160.83 points, or 1.3%, to 12419.86, erasing all of a 126-point gain the prior session. Off 6% in May so far, the index is on track for the biggest monthly point drop since May 2010 and the biggest monthly percent drop since Sept. 2011.
U.S. investors will cast an eye to the domestic front on Thursday, with the first-quarter gross domestic product revision due to be released by the Commerce Department at 8:30 a.m. EDT.
Weekly jobless claims will also be released at 8:30 a.m. EDT, and the Automatic Data Processing Inc. (ADP) employment survey for May will be released just ahead of that, at 8:15 a.m. EDT. That data comes ahead of Friday’s all-important nonfarm payroll data for May.
Also, at 9:45 a.m. EDT, the Chicago PMI index of business activity will be released.
May retail same-store sales are also on tap. Warehouse retailer Costco Wholesale Corp. (COST) reported same-store sales rose 4% in the month, while total sales rose 7%.
Among other stocks to watch, Joy Global Inc. (JOY) is expected to report fiscal second-quarter earnings ahead of the opening bell.
In Asia, stocks played catch-up to losses seen across other global markets Wednesday, with the Japan Nikkei Stock Average giving up 1.1%.
The euro remained below $1.25 against the dollar, but the dollar index was trading at 82.745, down from 83.053 late Tuesday.
-By Barbara Kollmeyer; 34 91 395 8131; AskNewswires@dowjones.com
(END) Dow Jones Newswires
Pelias' views 